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$463mn deal to ease Dubai Lagoon delays

Developer Schon Properties signs major contract following complaints about delays from investors.

By Claire Ferris-Lay

Wed 27 Aug 2008 12:42 PM

Dubai-based developer Schon Properties has signed a $463 million contract with Belhasa Engineering and Contracting Company to speed up the delivery of its delayed Dubai Lagoon development.

Investors in the $816.4 million residential project in Dubai Investment Park have been complaining about delays for months.

Earlier this month Schon Properties announced it would be giving full refunds to investors who had purchased units which were scheduled for completion by December 2007.

The statement came a day after Dubai’s real estate agency said the project had not been cancelled.

Schon Properties has blamed the delays on infrastructure alterations and the rising cost of construction costs which has forced the developer to renegotiate its original agreement with Thai contractor, Powerline Gulf.

Belhasa is expected to start on site in October and completion is expected at the end of 2010 or early 2011 said Schon Properties.